Need Quick Advise on using land as collateral

Hi marshak,

Welcome to this forum.

You have said "took out a construction to permanent loan". So what happened to that?

Now if you want to compare between personal loan and Line of Equity, I will suggest you to go for Line of Equity, because I think you will get a lower interest rate in that.

Thanks,
Larry

Hey Larry,

Thanks for the quick reply. I am 2 months into the build and have about a month and a half to go. However, the money is running out quickly. I just needed the extra cash for the things that I didn't plan for.

The land I own was bought in September for $70,000. Other properties around me are selling for $90,000 and up. I just need about $30,000.

How difficult would it be for me to get a Line of Equity with a FICO score of 630? Do you have any suggestions on any banks that would do this? I was looking into Bank of America, but I just wanted to know if this was even a possibility of happening.

Hi marshak,

Your FICO score is not too good. Why is it so low?

Okay, so you have $20,000 of equity and want $30,000 of loan. But I do not think that you can get that amount of loan with Line of Equity. The bank will not consider you $30,000 when you have only $ 20,000. So may be you have to go for personal loan. You may need to pay a bit higher interest rate as well because you have low credit score.

Bank of America is a good option. You can go for it. This community has more than 500 lenders. So anyone of them may also help you out.

Thanks,
Larry

Ok Thanks. I think the personal loan would be best. I'm not sure why my score is still so low. That was the score when I got the loan, and it hasn't changed. When I check my credit report, my loan with the Bank (for the construction loan) does not even show up.

Hi marshak,

You have got the loan only 2 or 3 months ago. So the credit score does not change so quickly. If you make regular payments to all of your debts, you will see your credit score will be improving.

Do you have made any late payments on your credit card debts or any other personal debts?

Thanks,
Larry

Hey Larry,

Nope. Everything has been good since I closed on the construction loan. I hope that it improves soon. How long it take for it to appear on the credit report?

Hi,

It takes almost 90 days to change your credit score or your credit history. That means you are right. Your credit score is going to be improved very soon if you have make all your payments on time. So you can ask the credit bureau to update your credit report.

Thanks,
Larry

Thanks Larry.

How exactly do you ask the credit bureau to update your credit report? Do I write them? Is there a number I can call?

Please advise.

Thanks!

2 ways.. you can eithe write them and wait..

or you can talk to a mortgage broker about doing a rapid rescore to get it updated in under three days.

Oh ok. Do I just contact any mortgage broker? Do they usually charge a fee for this?

Thanks Chris.

Hi marshak,

You can contact with a mortgage broker to get your credit report quickly and he will charge you a fee for that.

Thanks,
Larry